Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.9million. The firm also has a profit margin of 25 percent and a retention ratio of 30 percent, and expects sales of $8.9 million next year.AssetsCurrent assetsFixed assetsTotal assets$ 2,621,0004,900,000$ 7,521,000Liabilities and EquityCurrent liabilitiesLong-term debtEquityTotal liabilities and equityIf all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from externalsources to fund the expected growth?Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign.X Answer is complete but not entirely correct.Additional funds needed(243,300) X$ 2,557,1401,950,0003,013,860$ 7,521,000

The AFN refers to the funding that is required by the company for its operations to reach the…

Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.9 million. The firm also has a profit margin of 25 percent and a retention ratio of 30 percent, and expects sales of $8.9 million next year. Assets Current assets Fixed assets Total assets $ 2,621,000 4,900,000 $ 7,521,000 Liabilities and Equity Current liabilities Long-term debt Equity Total liabilities and equity Additional funds needed S If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth? Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign. Answer is complete but not entirely correct. (243,300) $ 2,557,140 1,950,000 3,013,860 $ 7,521,000

Suppose that Gyp Sum Industries currently has the balance sheet shown below, and that sales for the year just ended were $10.9 million. The firm also has a profit margin of 25 percent and a retention ratio of 30 percent, and expects sales of $8.9 million next year. Assets Current assets Fixed assets Total assets $ 2,621,000 4,900,000 $ 7,521,000 Liabilities and Equity Current liabilities Long-term debt Equity Total liabilities and equity Additional funds needed S If all assets and current liabilities are expected to shrink with sales, what amount of additional funds will Gyp Sum need from external sources to fund the expected growth? Note: Enter your answer in dollars not in millions. Negative amount should be indicated by a minus sign. Answer is complete but not entirely correct. (243,300) $ 2,557,140 1,950,000 3,013,860 $ 7,521,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 13P

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